If Potential Output Equals $8 Billion and Actual Output Equals

question 94

Multiple Choice

If potential output equals $8 billion and actual output equals $7 billion, then this economy has a(n) :

• A) budget deficit.
• B) trade deficit.
• C) expansionary gap.
• D) recessionary gap.

---

Definitions:

Psychological Disorders

A pattern of behavioral or psychological symptoms that impact multiple areas of life and/or create distress for the person experiencing these symptoms.

Unconscious Conflicts

Mental struggles largely beyond the awareness of an individual, often stemming from repressed feelings or experiences.

Social Skills Training

A form of behavior therapy used to improve interpersonal skills through learning and practicing new behaviors.

Modelling

A learning method where individuals ascertain how to act or perform by observing another individual.